Western Digital cuts first-quarter revenue view as hard disk demand falls
(Reuters) - Western Digital Corp (WDC.O), the world's largest storage-drive maker, cut its current-quarter revenue forecast as demand for hard disk drives (HDD) was muted, sending down its shares as much as 3 percent in after-hours trading.
Western Digital, which along with Seagate Technology Plc (STX.O) commands over 90 percent of the HDD market, said it expects industry demand of 140 million hard drives in the September quarter, down from its earlier forecast of 157 million units.
Shares of both companies fell 3 percent in extended trading.
Western Digital said its board of directors has given the go ahead for an additional $1.5 billion share buyback.
The company also said it will start a quarterly dividend of 25 cents per share payable on October 15.
Western Digital expects revenue of $3.9 billion to $4.0 billion for its first quarter ending September 28, down from its prior forecast of $4.2 billion to $4.3 billion.
Analysts on average were expecting revenue of $4.29 billion, according to Thomson Reuters I/B/E/S.
The company expects adjusted gross margin of about 30 percent in its first quarter.
(Reporting by Siddharth Cavale)